NEWS / Foreign Exchange

Indices get a lift from solid economic data

- Revised Q4 GDP and lower initial jobless claims reassured investors the economy is on solid ground, while a slightly lower revision of Q4 core PCE temporarily assuaged fears that inflation is accelerating.   Equity futures moved to highs right after the data, but had been in positive territory throughout the session helped by strength in overseas markets.  LSS has added more than 35% after US Steel made an offer for the company.  The deal has been well received with X up 3.3% and other steel names moving higher.  IPS +10% TS +2% TONS +3% ZEUS +3% STLD +4%  Money is coming out of the HMO names after UNH was cut at UBS before the open.  UNH ??“3% CI ??“1.5% AET ??“1% WLP ??“2% HUM ??“2%  Semis are keeping a lid on the NASDAQ as the SOX trades off 1%.  Overall equity strength comes in the face of higher oil prices.  May crude approached $65 early in the session and still trades up close to 1% to $64.60.  Boone Pickens reiterated his bullish thesis this morning on CNBC.  Gold futures are down close to 2% despite the strength in oil.  The USD/JPY trades up more than 100 pips at 117.87 while the Euro and Cable tick fractionally higher.  Treasuries are marginally lower as the 10-year yields 4.632% ahead of tomorrows Feb income, spending, and PCE data.